First time buyers opting for 'wait and see' approach

11-Sep-2007

Uncertainty over the future movements of both interest rates and house prices has led to more first time buyers delaying in their decision to buy a home in order to wait for surer market trends to develop, a new study shows.

The Royal Institution of Chartered Surveyors' (Rics) Lettings Survey has said that 29 per cent more of its members saw a rise in tenant lettings as opposed to a fall over the past three months, a rise of 14 per cent on last quarter's figure.

Rental growth rates, already on the rise, are expected to grow further as more prospective homeowners opt to sit tight in apartments over the autumn, Rics added.

"Current economic uncertainty has created an ideal platform for buy-to-let investors to cash in on rising rental levels," said Rics spokesperson Jeremy Leaf.

"Many would-be buyers have decided to wait and see how the interest rate cycle will affect the market," Mr Leaf added.

However, this week it has been advised that the credit crunch will not see buy-to-let investors escape completely, with rates on buy-to-let products from lenders such as Advantage expected to be raised shortly, according to the Financial Times.

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